ADB's loan for highway project faces risk due to late final decision
Pakistan is at risk of losing a $360
million loan from the Asian Development Bank
(ADB) that was earmarked for the Carec Tranche III international highway
project, unless a final decision is made before the April 5 disbursement
deadline.
All previously raised concerns
regarding procedural issues in the award process have now been addressed, and
the matter is awaiting final approval from Prime Minister Shehbaz Sharif.
The relevant authority is awaiting
the Prime Minister’s decision, which is expected before Sunday.
Read More Pakistan
emerges as the fifth largest beneficiary of ADB loans and grants
Last month, the ADB granted a
one-month extension but made it clear that April 5 would be the final,
non-negotiable deadline. The bank has warned that failing to award the contract
within the extended period could lead to non-compliance, potentially affecting
the financing of the project.
The project is part of the Central
Asian Regional Economic Cooperation (CAREC) corridor and involves the
development of four major road segments, connecting Rajanpur, Jampur, D.G.
Khan, Tibbi Qaisrani, and DI Khan. The total estimated value of the project is
Rs. 172 billion.
The delay comes at a time when
Pakistan is under growing economic pressure, exacerbated by the Gulf war, which
has already increased the country’s annual oil import bill by $1.5 billion.
Source:
ProPakistani